InvestEU Program Bolsters SME Support: EIF and Innovation Norway Ink Landmark Deals

InvestEU Program Bolsters SME Support: EIF and Innovation Norway Ink Landmark Deals

(IN BRIEF) The European Investment Fund (EIF) and Innovation Norway have sealed two groundbreaking agreements aimed at bolstering financing opportunities for small and medium-sized enterprises (SMEs) in Norway. This strategic collaboration will empower Innovation Norway to expand its lending volume, offering more favorable terms and conditions to companies engaged in the green transition, innovation, and growth initiatives. Notably, the agreements incorporate a counter-guarantee mechanism designed to enhance access to finance for innovative and rapidly expanding Norwegian SMEs, with the goal of channeling up to NOK 2.9 billion through the Guarantee for Growth program in collaboration with participating banks. Set to officially commence on June 6, 2024, this initiative underscores the EIF and Innovation Norway’s shared commitment to nurturing a vibrant SME ecosystem in Norway, driving economic progress, and advancing sustainable development. Backed by the InvestEU program, this EIF commitment underscores its dedication to mobilizing investments aligned with European Union policy priorities, particularly the green and digital transition, as well as social investment and skills development. EIF Chief Executive Marjut Falkstedt expressed enthusiasm about the collaboration, highlighting its potential to catalyze green transition, innovation, and sustainable growth in Norway. Håkon Haugli, CEO of Innovation Norway, echoed this sentiment, hailing the agreements as transformative milestones that will empower SMEs to pursue ambitious projects in innovation and green transition, thus driving the Norwegian economy forward. The signature ceremony, marking the formalization of this landmark partnership, took place on June 6 in Oslo. EU Ambassador to Norway Nicolas de La Grandville commended the collaboration as a testament to EU-Norway cooperation, underscoring its role in facilitating the green and digital transitions while promoting economic prosperity.

(PRESS RELEASE) LUXEMBOURG, 7-Jun-2024 — /EuropaWire/ — In a significant move aimed at bolstering financing options for small and medium-sized enterprises (SMEs) in Norway, the European Investment Fund (EIF) and Innovation Norway have forged two pivotal agreements. These agreements, unveiled today, promise to amplify lending capacities, offering more favorable terms and conditions to companies involved in pivotal sectors such as the green transition, innovation, and growth projects.

Under the partnership, Innovation Norway, known for its steadfast support of business expansion and exports, is poised to ramp up its lending volume. This initiative, buoyed by a counter-guarantee, seeks to enhance access to finance for innovative and fast-growing Norwegian SMEs. With EIF’s backing, Innovation Norway aims to facilitate up to NOK 2.9 billion in credits and lending from participating banks through the Guarantee for growth program. This targeted effort is tailored to address the specific financial needs of innovative and rapidly expanding SMEs, ensuring they have the requisite resources to scale and flourish.

The official launch of this collaboration marks a progressive stride in fortifying Norway’s entrepreneurial landscape. Banks keen on partaking in this initiative are urged to join, with the program opening its doors on June 6, 2024. This symbiotic endeavor underscores the unwavering dedication of both EIF and Innovation Norway towards nurturing a resilient and dynamic SME sector in Norway, thereby propelling economic growth and advancing sustainable development.

Crucially, the EIF’s commitment is underpinned by the InvestEU program, which serves as a catalyst for mobilizing investments aligned with European Union policy imperatives such as the green and digital transition, alongside social investment and skills enhancement.

Marjut Falkstedt, Chief Executive of EIF, expressed optimism about the transformative potential of these agreements: “Through these new agreements backed by the InvestEU program, we are glad to support Innovation Norway in significantly expanding its lending capabilities. This collaboration will provide essential financing to SMEs, fostering the green transition, innovation, and sustainable growth in Norway.”

Echoing similar sentiments, Håkon Haugli, CEO of Innovation Norway, hailed the accords as landmark strides: “This partnership with the EIF under the InvestEU program is a significant milestone. With these guarantees, we can now offer even more favorable terms to SMEs, enabling them to pursue ambitious projects in innovation and the green transition. We are excited to see the positive impact this funding will have on the Norwegian business landscape, especially for fast-growing and innovative companies that drive our economy forward.”

The ceremonial signing of the agreements took place on June 6 in Oslo, symbolizing a shared commitment towards catalyzing economic prosperity and fostering sustainable growth. Nicolas de La Grandville, EU ambassador to Norway, lauded the InvestEU program as a shining example of EU-Norway collaboration, underscoring its role in facilitating the green and digital transitions while nurturing growth and innovation. He emphasized the pivotal role played by the EEA Agreement in promoting economic prosperity and reaffirmed a collective commitment towards building a more resilient economy and securing a sustainable future.

EIF

The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Innovation Norway is the Norwegian government’s main instrument for innovation and development of Norwegian enterprises and industry. It supports companies in developing their competitiveness and ability to innovate to create value for Norway by offering advisory services, networks and financial support.

Media Contacts:

EIB Group: 
Thomas Eriksson
t.eriksson@ext.eib.org
Website: www.eib.org/press
Press Office: press@eib.org

Innovation Norway: 
Kjetil Svorkmo Bergmann
+47 90 82 09 18
kjetil.svorkmo.bergmann@innovasjonnorge.no

European Union Delegation to Norway: 
Johanne Stavdal Engh
+ 47 93 85 42 65
johanne-stavdal.engh@eeas.europa.eu

European Commission:
Ignazio Cocchiere
+32 460 76 19 63
ignazio.cocchiere@ec.europa.eu

SOURCE: European Investment Fund